An Overview of Iowa s Downtown Resource Center. Jim Thompson CMSM Business Specialist, Main Street Iowa
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2 An Overview of Iowa s Downtown Resource Center Jim Thompson CMSM Business Specialist, Main Street Iowa
3 Downtown is a symbol of economic health of the community.and even a key element in industrial, commercial and professional development.
4 A Healthy Downtown Reflects Healthy Community Good incubator for small business Reduces sprawl Major employer Protects property values & public investment Authentic experiences & tourist attraction Civic forum & community space
5 Common Mistakes Communities Make Not understanding the consumer. Focusing on what is missing instead of what you have. Not building strong relationships. Focusing on projects rather than a comprehensive strategy (Process). Still living in the 1980 s (or before)
6 WHAT NO ONE WANTS TO TALK ABOUT Few communities have development programs that really support small businesses. Can t have a effective Downtown Economic Development program without attractive space and cooperative landlords. Can t have a strong business recruitment program without a strong business retention program. Can t have a strong business retention or recruitment program without a strategic plan.
7 Where do we start? Working TOGETHER
8 Get on the Same Page Partnerships
9 Downtown Economic Development It doesn t really matter who does it! There is Power in Simple! Unknown
10 We make it way too hard, sometimes! Downtown Economic Development Assessment Business Development Real Estate Development
11 Know your product Building inventory Business inventory Occupancy trends Local & regional business trends Physical characteristics Regulatory environment Zoning ordinances Building codes Permits & licenses
12 Secondary Data (Know your customer) Demographic data Psychographic data Sales and economic data Data sources include: U.S. Census Bureau State & Local Agencies ESRI (MSI) Environmental Systems Research Institute, Inc., Founded in 1969
13 Primary Research Consumer (Demand) Business (Supply) Methods Include: Intercept and POP Surveys Zip Code & License Plate Surveys Internet and Surveys Focus Groups Business Surveys
14 Improving the Value of Real Estate» Commercial real estate has one major determinate of value the ability to earn income.» Empty commercial properties earn Zip!
15 What are the forces that affect property value in your downtown?» Successful businesses add value to property through renovations and expansions.» Successful companies attract other businesses which affect rental rates (supply & demand) and increase property values.» Building uses - the more options, the more value the property has.
16 This is what has happened in too many communities... Is this present in your district? Believe it or not some property owners won t pay for their own building repairs. Cycle of Dis-investment
17 First Impression?? Appearance
18 Customers Visit More Frequently Increased Store Revenue Business Success Customers Spend More Time Shopping Increase Profitability Downtown Viability
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24 Vacant Buildings
25 Generating Leads
26 Generating Leads
27 Ready for Development?
28 Opportunities Hot List Maintain a strong working relationship with local realtors, bankers, developers, etc.
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30 Cost of an Empty Storefront For every year this space sits empty it cost the community over $220,000
31 Upper Floor Housing
32 Benefit to an Iowa downtown economy from an upper floor housing unit rented to a couple for between $500 and $1000/month Food at home $1, $3,795 Food & Drink out $ $1,613 Rent $6, $12,000 Other housing costs including utilities, maintenance, insurance, and upkeep $4, $9,213 Furniture, equipment & electronics $ $1,121 Apparel & apparel services $ $1,310 Vehicular and transportation related $1, $3,819 Health related $ $1,577 Entertainment $ $1,868 Personal services $314 $629 All others $ $1,994 Total Annual Economic Impact of an Upper Floor Apartment in an Iowa Downtown $19,469 $38,939
33 Property Tax Assessment Tool Downtown s Challenges What is the most valuable real estate in your community/county?» Farmland?» Luxury golf course or lake homes?» Rehabbed homes in historic neighborhoods?» Strip shopping center?» Big box retailer?» Downtown? (Assessed values)
34 Downtown Is The most valuable real estate in your community!» Downtown (Occupied 2nd): $1,615,652 per acre» Downtown (Unoccupied 2nd): $1,216,215 per acre» Downtown (Unoccupied 2nd): $ 819,450 per acre» Big Box retailer: $ 136,112 per acre» Strip mall: $ 132,656 per acre» Ind./Man. $ 69,703 per acre» Luxury homes: $ 609,302 per acre» Farmland: $ 23,500 per acre
35 Turning long neglected buildings
36 into beautiful show pieces!
37 KEY TO SUCCESS» Active, well organized» Clear understanding of who you are» Focus first on rebuilding from within» Maintain the support of business owners, property owners and community.» Don t copy someone else s vision» Focus on projects that create the domino effect, not silos.» Set high standards
38 Biggest Concern It s easier to talk about the problems and complain, than to do something about them!
39 Housing Why Here?» #1 Economic Development Rural Development Summit» Destination Development» Appropriate vs. Affordable Housing» Split Classification of Commercial Properties» Partnerships Public/Private» Are We Getting In Our Own Way?
40 Iowa Downtown Resource Center Programs and Resources Statewide Conference Advocate for Downtown Technical Assistance Downtown Assessment Visit & Walk Arounds Downtown Exchange Downtown Forums and Networking
41 Community Development Block Grant Downtown Revitalization Fund: $500,000 award opportunity façades All federal requirements Meet national objective: Slum and blight
42 Other Resources: State Historic Preservation Office Grants, tax incentives, technical assistance and training Keep Iowa Beautiful Project grants, Hometown Pride program College and University partnerships/programs Iowa Architectural Foundation Community Design Program Iowa Nonprofit Resource Center
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44 Reality
45 aha s aha s aha s aha s Comments Questions?
46 Contact Information Jim Thompson Business Specialist Downtown Resource Center Iowa Economic Development Authority 200 East Grand Avenue Des Moines, Iowa
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